University of Kentucky College of Agriculture

Unit: PRIMER

Resources
The R in PRIMER represents Resources. New or expanded enterprises often require new or expanded resources. 

The kind of questions to ask:   (click here to view questions)
     
  • Is this enterprise adaptable to my area?Yes No Maybe
  •  
  • Do I have experience with this enterprise?Yes No Maybe
  •  
  • Do I have, or can I get, the resources to produce
    this product?Yes No Maybe
  •  
  • Are highly specialized resources required that
    have limited alternative uses?Yes No Maybe

 

Different Resources

A New enterprise may require investment in machinery, buildings, or land. Labor and management requirements may be different for new enterprises. Farmers already producing labor intensive crops often look toward other labor intensive enterprises as supplements or alternatives. New enterprises with labor requirements that complement rather than conflict with the labor peaks of current farm enterprises may fit well to keep laborers more fully employed. The best resource situation for new or expanding enterprises is when existing resources can be used or adapted. Large investments in capital resources for untried or risky alternatives may not be well received at the lender’s desk, especially if they are highly specialized. If current resources of land, labor and capital can be used, then the risk of entering into a new enterprise is reduced.